Investments

6 Months Ended

Jun. 30, 2012

Investments

Investments

C.Investments

As of June 30, 2012 and December 31, 2011, the combined total of our short- and long-term investments equaled $176.6 million and $166.2 million, respectively, and consisted of securities classified as available-for-sale in accordance with accounting standards which provide guidance related to accounting and classification of certain investments in debt and equity securities.

The following is a summary of our short- and long-term investments as of June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Short-term investments:
Corporate debt securities
Due in one year or less	$	57,598	$	86	$	(37	)	$	57,647
Due in one to three years	52,577		64		(70		)	52,571
U.S. treasury and government agency securities
Due in one year or less	17,972		95		—			18,067
Due in one to three years	40,709		104		(4		)	40,809
Commercial paper
Due in one year or less	7,487		—		(10		)	7,477
Total investments	$	176,343	$	349	$	(121	)	$	176,571

	December 31, 2011
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Short-term investments:
Corporate debt securities
Due in one year or less	$	74,687	$	81	$	(115	)	$	74,653
Due in one to three years	19,950		73		(50		)	19,973
U.S. treasury and government agency securities
Due in one year or less	26,770		67		(7		)	26,830
Due in one to three years	21,028		228		—			21,256
Commercial paper
Due in one year or less	5,997		—		(6		)	5,991
Total short-term investments	$	148,432	$	449	$	(178	)	$	148,703
Long-term investments:
Auction rate securities
Due after five years	19,900		—		(2,373		)	17,527
Total long-term investments	$	19,900	$	—	$	(2,373	)	$	17,527
Total short and long-term investments	$	168,332	$	449	$	(2,551	)	$	166,230

Auction Rate Securities

In June 2012, we sold our remaining ARS portfolio, with a par value of $19.8 million, for proceeds of $18.3 million and recognized a loss of approximately $1.5 million in other income (expense) in our condensed consolidated statements of income for the three and six months ended June 30, 2012. All of the ARS we held consisted of municipal bonds with an auction reset feature and were classified as available-for-sale.

Impairments and Unrealized Gains and Losses on Investments

The following is a summary of the fair value of our investments with unrealized losses that are deemed to be temporarily impaired and their respective gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 2012
	Less than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Corporate debt securities	$	58,433	$	(92	)	$	937	$	(15	)	$	59,370	$	(107	)
U.S. treasury and government agency securities	8,391		(4		)	—		—			8,391		(4		)
Commercial paper	7,477		(10		)	—		—			7,477		(10		)
	$	74,301	$	(106	)	$	937	$	(15	)	$	75,238	$	(121	)

	December 31, 2011
	Less than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Corporate debt securities	$	34,097	$	(161	)	$	4,124	$	(4	)	$	38,221	$	(165	)
U.S. treasury and government agency securities	8,841		(7		)	—		—			8,841		(7		)
Commercial paper	5,991		(6		)	—		—			5,991		(6		)
Auction rate securities	—		—			19,900		(2,373		)	19,900		(2,373		)
	$	48,929	$	(174	)	$	24,024	$	(2,377	)	$	72,953	$	(2,551	)

We did not recognize any other-than-temporary impairment losses in our condensed consolidated statements of operations related to our securities during either of the three or six months ended June 30, 2012. Future events may occur, or additional information may become available, which may cause us to identify credit losses where we do not expect to receive cash flows sufficient to recover the entire amortized cost basis of a security and which may necessitate the recording of future realized losses on securities in our portfolio. Significant losses in the estimated fair values of our investments could have a material adverse effect on our earnings in future periods.

Realized Gains and Losses on Investments

Gains and losses are determined on the specific identification method. During both the three and six months ended June 30, 2012 we recorded realized losses of $1.5 million to our condensed consolidated statements of operations related to the sale of our remaining ARS portfolio, as discussed above.